[TIP-006] Research & Investigate Expansion of $THOR + Staking to Arbitrum (ARB)

🔗 TIP-006 discord discussions

THE PROPOSAL

If passed this proposal would signal for THORSwap contributors to research and develop a comprehensive plan to expand $THOR to a second chain: Arbitrum. This proposal is a vote for direction - the tech to execute is not laid out/finalized.

Deployment may take the form of cross-chain bridging or burn/mint mechanism to allow for $THOR to be accessible on Arbitrum. Note: $THOR contract does not have a built-in burn/mint mechanism, if tokens are burnt they can not be re-minted, thus it is important to ensure liquidity/supply is not siloed or lost forever in the event of any issues with Arbitrum.

The end goal would be to have arb.THOR and arb.vTHOR up and running to have allow for $THOR staking on Arbitrum as well. There should be a stable mechanism to allow for the accurate monitoring of staking ratio and reward distribution.

Summary

This proposal’s intention is to signal an expansion of $THOR to a lower gas fee EVM-chain. The community has signaled overwhelmingly that they prefer Arbitrum (ARB) as the expansion chain. A portion of the community incentives pool would be burned or locked/bridged and a new token contract deployed on the new chain.

Future TIPS can be made regarding seeding a liquidity pool on Camelot/Grail and/or some airdrop, if the community sees fit. However this has been excluded from this proposal so we can isolate the expansion decision and give the signal for the THORSwap contributors to perform R&D to make it happen.

Abstract

High gas fees are back and many in the community are voicing concerns about the limitations this poses for current and potential $THOR holders and stakers. With Increased access/visibility on Arbitrum, which is budding with DeFi actvitity, the project becomes easier for users to participate in without getting priced out by fees.

Low fees would also allow different staking/rewards mechanisms that could be fruitful and can be looked at in the future as well. Examples could be additional options for rewards like stables, etc.

Motivation

-Link to initial community-ideas thread (long discussion)

-Link to the initial forum draft proposal

-Most recent Discord expansion chain temp check (overwhelmingly in favor of ARB)

Benefits

Lower gas fees would be broader access to $THOR, also allowing for different staking/rewards mechanisms that could be fruitful and can be looked at in the future as well. Examples could be additional options for rewards like stables, scalable reward/marketing initiatives and more.

Drawbacks

Although there has been a resounding favor for this proposal, potential drawbacks include:

1. Fragmentation of liquidity between the two chains.
2. Future longevity of Arbitrum.
3. Because $THOR contract does not have a built-in burn/mint mechanism, if tokens are burnt they can not be re-minted, thus it is important to ensure liquidity/supply is not siloed or lost.
4. Bridging mechanisms and risks associated.